Reviewing the Rationale for Cross-Shareholdings and Reducing Them
First written in FY2019. 2 of 6 entries say "Advanced", first in FY2020. Latest entry: FY2026.
24 other companies' latest entry also says "Other".
- FY2026Failure to Meet Reduction Target; Updated PolicyAnnual report
「During the fiscal year, the company reduced 10 holdings in accordance with the reduction policy established by the Board of Directors in September 2023, which called for reducing the market value of its holdings to below 10% of consolidated net assets by the end of March 2026, the final period-end of Medium-Term Management Plan 2025. However, due to increases in the share prices of its listed holdings, the ratio to consolidated net assets rose from 17.3% to 24.0%.」
Although the Company reduced 10 holdings, the ratio of cross-shareholdings rose from 17.3% to 24.0% as share prices increased, meaning that the previous target of less than 10% was not met. The Company has adopted a new policy of reducing the ratio to less than 10% early in the period covered by Medium-Term Management Plan 2028. - FY2025AdvancedAnnual report
「By the end of March 2026, the final period-end of the medium-term management plan, the company aims to reduce the ratio of the market value of its holdings, or their net asset value in the case of unlisted holdings, to the total assets on the balance sheet to below 10% of consolidated net assets.」
The Company set a target of reducing cross-shareholdings to less than 10% of consolidated net assets by the end of March 2026 and reduced 17 holdings during the fiscal year. - FY2024-Q3RestatedAnnual report
「During the cumulative third quarter of the fiscal year, a risk relating to a contingent event described in the quarterly report as potentially having a material impact on the consolidated companies' financial condition, results of operations, and cash flows has arisen.」
Although the Company broadly states that a risk relating to a contingent event has arisen, it does not indicate any change to its policy of reviewing the rationale for holding cross-shareholdings or reducing them. - FY2021ReframedAnnual report
「The company confirmed that all holdings subject to verification were held to maintain or strengthen business relationships with the issuing companies and that continued ownership was justified. However, from the standpoint of economic rationality, including holdings whose average return was below the cost of capital, it decided to sell 3 holdings.」
Regarding the review of the rationale for cross-shareholdings, the Company stated that it had confirmed the appropriateness of its business relationships while deciding to sell 3 holdings whose average return was below the cost of capital. - FY2020AdvancedAnnual report
「The Company decided to sell 7 holdings from the perspective of economic rationality, including holdings with an average return below the cost of capital.」
The Company reviewed its cross-shareholdings and decided to sell 7 holdings from the perspective of economic rationality. - FY2019First statedAnnual report
「The company periodically reviews and verifies whether it should continue holding the shares from both quantitative perspectives, taking into account risk and return in light of the cost of capital, and qualitative perspectives, including future prospects. If it determines that continued ownership is not justified, it will review the holdings, including through reductions.」
The Company has, for the first time, explicitly stated its policy of regularly reviewing its cross-shareholdings based on the cost of capital, risk and return, and future outlook, and reducing them when they are not considered appropriate.